Acro Seoul Forest Breaks 6 Billion Record... Ultra-High-End Apartment "Unaware of Regulations"

Ownership Transfer with Contract on Last Day of May
Record High Prices Continue for Ultra-Luxury Apartments like Hannam The Hill and Nine One Hannam
Experts: "Wealthy Buyers Unaffected by Government Regulations and Tax Policies...Limited Supply Drives Price Increase"

[Asia Economy Reporter Onyu Lim] The residential-commercial complex "Acro Seoul Forest" in Seongsu-dong, Seongdong-gu, Seoul, was sold for 6 billion KRW, the highest price ever recorded for this apartment. Despite the government's increased tax burdens and tightened loan regulations, prices for ultra-high-end apartments continue to soar. Experts predict that this trend will persist due to insufficient supply relative to demand.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 2nd, a 200.74㎡ (exclusive area) unit in Acro Seoul Forest was sold for 6 billion KRW on the 31st of last month. Analysis of the official registry shows that ownership was transferred simultaneously with the contract on the last day of May, just before the capital gains tax rate for multi-homeowners was raised to a maximum of 75%.

The 6 billion KRW price is nearly double the original sale price of 3.48 billion KRW, marking the highest transaction price for the entire apartment complex. Two days earlier, on the 29th of last month, a larger 202.62㎡ unit was sold for 5.9 billion KRW.

Built by DL E&C (formerly Daelim Industrial), Acro Seoul Forest offers views of Seoul Forest and the Han River, and is considered a landmark in Seongsu-dong alongside nearby Galleria Foret and Trimage. A representative from Seongsu-dong A Real Estate Agency stated, "With the addition of Acro Seoul Forest, the Seongsu-dong area is emerging as a new affluent neighborhood in northern Seoul," adding, "Once the redevelopment of the Seongsu strategic maintenance district becomes visible, this area will undergo a dramatic transformation."

Despite the government's strengthened loan regulations on high-priced homes, the adjustment of official property prices, and increased tax rates leading to higher tax burdens, demand for ultra-high-end apartments remains strong. Landmark complexes in Seongsu-dong, as well as Hannam-dong in Yongsan-gu and Cheongdam-dong in Gangnam-gu, continue to be traded at record-high prices.

The highest-priced apartment transaction so far this year is a 243.2㎡ unit in Hannam The Hill, Hannam-dong, which was sold for 8 billion KRW on February 17th. This price is 250 million KRW higher than the 7.75 billion KRW transaction for the same area in September last year. The 243.34㎡ unit in Nine One Hannam, which converted to sale this year, was contracted for 7.9 billion KRW in April. It is known that BTS members RM and Jimin purchased this apartment with cash. Additionally, a 241.93㎡ unit in Galleria Foret, Seongsu-dong, changed hands for 5.95 billion KRW in March.

Ham Young-jin, head of the Zigbang Big Data Lab, said, "Buyers of ultra-high-end apartments have sufficient purchasing power with their own capital, so government regulations do not pose a problem," adding, "Rather, due to limited new supply, scarcity is high, and preference for these properties will continue."